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Report: Ford, Chevy the Worst Hit by Microchip Shortage

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Press Release
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Carmakers across the globe have been struggling to meet customer demand for new cars as the shortage of critical microchips led to plant closures and left dealers with a shrinking inventory. Unfortunately, the US automakers seem to be the worst hit by this situation.

According to data presented by Buy Shares, the US car brands Ford and Chevrolet have taken the worst hit by the global microchip shortage, with almost 370,000 vehicles taken out of the production as of May.

When car factories in the US and across the globe closed in the early days of the COVID-19 last spring, many carmakers made what has turned out to be a critical error. They canceled orders for the microchips essential to the manufacture and operation of new cars.

Although demand for new cars has returned, the microchips, vital for everything from a vehicle’s onboard computer to safety features and infotainment system, have been in short supply around the world for months, and the problem could take a couple of years to resolve.

The fire at an automotive chip plant in Japan, tighter supply chains after the Ever Given grounding in the Suez Canal, and the lack of oil for the plastic used in chips all came as a new shock after the pandemic, causing carmakers huge problems with sourcing the microchips.

An AutoForecast Solutions report showed Ford had been the hardest hit by the global microchip shortage, taking over 230,000 vehicles out of production. Chevrolet took the second-hardest hit among the US carmakers, with its production cut down by 140,800 cars. Jeep follows with around 138,700, respectively.

When it comes to the worst impacted models, the Ford F-Series pickup comes first, with its production reduced by 109,710 units due to the microchip shortage. Statistics show 98,584 fewer Jeep Cherokees are planned, while Chevrolet Equinox production will fall by 81,833, ranking as the third worst impacted model.

The global microchip shortage and the massive production cuts significantly impacted US carmakers’ stock prices. The YCharts data show Ford’s market capitalization dropped by $7.8bn in the last month, falling from $63.7bn in June to $55.9bn last week.

General Motors, the US multinational corporation that manufactures Chevrolet, Buick, GMC, and Cadillac, has taken an even heavier hit. Statistics show the market cap of the US market leader in terms of light vehicle sales plunged by $8.4bn in the last month.

Chrysler Stellantis lost $2.6 billion in market cap in this period. Statistics show the combined market cap of General Motors, Ford, and Chrysler Stellantis as the “Big Three” U.S. carmakers plunged by $18.8bn in the last month.

Jastra Kranjecis an editor, writer, and PR specialist with years of experience in the news, research, and report writing.

Report: Record 136 New Billion-Dollar Companies Born in Q2 of 2021

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Press Release
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Despite the global economy taking a hit amid the pandemic, the number of companies attaining the one billion valuations appears not to be slowing down. Consequently, the emerging unicorns have hit record levels backed by several factors. 

Data acquired by Finbold indicates that the number of new global unicorns has spiked 491% between Q2 2020 and Q2 2021 from 23 to a staggering 136. During the first three months of this year, the figure stood at 113, representing a growth of 140.4% from 2020 Q4’s 47 unicorns. 

Between Q2 2016 and the second quarter of this year, the number of companies to attain a billion-dollar valuation grew by 871%. During the period, the least number of unicorns was recorded in Q4 2016 at 10. The data on the number of newly-born unicorns is provided by the tech market intelligence platform CB Insights. 

The spike in unicorns has been fueled by increased funding, high levels of innovation, high-quality talent, and the ability to sell to a large market. Furthermore, companies attaining the unicorn status have either disrupted existing markets or created entirely new markets backed by technological innovation and smart market strategies.

The significant growth of unicorns emerged amid the coronavirus pandemic that impacted the global economy. At some point, the pandemic resulted in slowed funding but picked up in the second quarter of last year. 

Most of the unicorns that emerged amid the pandemic capitalized on the newfound urgency of online integrations. In general, the pandemic has accelerated the adoption of online technologies. However, the companies had already recognized the need to shift online before the health crisis ushered in clients and investors. 

Additionally, most unicorns have missed the chance to go public while preferring to take advantage of the plentiful private capital from hedge funds, mutual funds, and corporate venture capital firms. 

Notably, during the last year, the IPO sector has witnessed a boom. Most companies usually avoid the IPOs route to avoid the risk of devaluation, especially if the public market thinks a company is worth less than its investors. Investors and startups also do not want to deal with the hassle of going public because of increased regulations.

Buyouts have also become popular, contributing to the billion-dollar valuation of these companies. Most of the big firms acquire many startups to diversify their business and handle competitors in the sector.  

At the same time, the number of unicorns reflects the nature of venture capitalists who primarily depend on fast-growth strategies for a startup’s development. 

Such an approach encourages investing large amounts of money in every round of financing to capture the most significant possible market share as soon as possible. This also prevents the emergence of substantial rivals in the marketplace. In the end, the unicorn company’s valuation skyrockets with every round of financing.

With an increased valuation, the company’s focus is on sustaining profitability. Although profits and growth don’t go hand in hand, the companies must build sustainable development rather than opt for a quick, short-sighted bump in profits. 

Moving forward, the ever-increasing supply of capital to the largest VC-backed companies will potentially continue to fuel this activity for the next few years. In return, most of the companies will have a better chance of hitting unicorn status. However, to keep growing, unicorns need to develop their dynamic capabilities constantly.

New York Power Plant Teams With GE On ‘Green Hydrogen’ Demonstration Project

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Press Release
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Thirty miles east of Poughkeepsie in Dover, New York, the Cricket Valley Energy Center occupies an old industrial site that was vacant for 20 years. Today, the place also points to the way of decarbonization in the energy industry.

The 1,100-megawatt Cricket Valley power plant, in operation since 2020, is one of the most efficient combined-cycle power plants in the state. It is capable of providing the equivalent electricity needed by 1 million homes with three GE 7F.05 gas turbines that run on natural gas, a cleaner-burning fuel that can help utilities add baseload power and allow them to retire coal-fired power plants. And now it’s on a trajectory to become even more sustainable.

In an agreement signed with GE last week, Cricket Valley will undertake a demonstration project, starting in late 2022, by running one of its three turbines on a blend of natural gas with 5% “green hydrogen” by volume — hydrogen produced with renewable energy. It’s the first step in a process that could lead to converting the entire plant into a 100% green-hydrogen-burning facility over the next decade — and marks another boost in the burgeoning effort to deploy hydrogen as part of the transition to cleaner energy.

The initiative, dubbed the H2 Roadmap, is intended to support New York state’s goal of 100% zero-carbon emissions in the electricity sector by 2040, a target announced in the state’s 2019 Climate Leadership and Community Protection Act (CLCPA), the most ambitious by any U.S. state. The H2 Roadmap will facilitate research and development in the hydrogen sector by testing percentages of hydrogen utilization in the fuel mix as the clean fuel becomes more available.

“As a leader in providing reliable, dispatchable power generation, we enlisted GE’s extensive experience with hydrogen to support the development of lower-carbon technologies in the state of New York,” said Chuck Davis, president of Advanced Power Asset Management, which manages the facility. “With this agreement, we will begin to define a roadmap for the conversion of recently constructed natural-gas-fired power plants to lower- and zero-carbon fuels.”

The Cricket Valley plan is the second boost “green hydrogen” has received this month in the state of New York. On July 8, Gov. Andrew Cuomo announced that the New York Power Authority (NYPA) will conduct a pilot project in 2021 to temporarily replace natural gas with a blend of natural gas and “green hydrogen” at its Brentwood Power Station on Long Island. GE Gas Power will play an integral role in that project also, supplying the hydrogen/natural gas blending system and supporting the project’s planning and execution.

Beyond New York, the Long Ridge Energy Terminal in Hannibal, Ohio, is another power plant that is expected to go online later this year with a hydrogen-and-gas blend. The 485-megawatt facility will be the first purpose-built power plant in the United States to burn hydrogen and will use a powerful new gas turbine made by GE to produce enough electricity to light up the equivalent of 400,000 U.S. homes. And in Australia, the EnergyAustralia utility is building that nation’s first gas-and-hydrogen power plant, which will use a GE 9F.05 gas-fired turbine to churn out approximately 316 megawatts of quickly dispatchable power that will help offset the energy that will be lost when a nearby coal-fired facility is decommissioned.

To be sure, “green hydrogen” must overcome several obstacles before it can become a viable replacement fuel. The price will need to come down by about 50%, according to S&P Global. For example, green hydrogen producers could tap more renewable power during periods when a wind farm is spinning out more power than the operator can send to the grid or store.

GE is well positioned to help during this crucial phase of the energy transition. More than 75 GE gas turbines have already racked up over 6 million operating hours running on hydrogen or hydrogen-like fuels, much of it at factories that create hydrogen as a by-product and feed it back into the turbines that drive their plants.

“GE’s gas turbine technology, building on decades of our leadership in low-BTU fuel operations including hydrogen fuels, validates the important role existing technologies and assets can play in reducing carbon emissions,” Scott Strazik, CEO of GE Gas Power, said of the Cricket Valley agreement. “We are pleased to work with CVEC to support its efforts in achieving carbon neutrality across its operations, while demonstrating the collaboration essential for a decade of action to reduce carbon emissions from the power generation sector.”

Pepsi’s 2020 DE&I Report Illustrates Company’s Progressive Journey from Commitment to Action

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Press Release
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PepsiCo DE&I Annual Report 2020

PURCHASE, N.Y. (PRNewswire) — PepsiCo, Inc. this week published its 2020 Diversity, Equity and Inclusion (DE&I) Report, debuting an evolved global strategy underpinned by “A Space to be You”— a fundamental belief that goes beyond the PepsiCo walls to foster diverse, equitable, and inclusive principles not only throughout the organization, but also across its business partners and communities it serves.

The report outlines PepsiCo’s diversity journey, while pointing to its progress and commitments across three distinct pillars: People, Business, and Communities, taking a holistic view at the impact made by the company in the last year.

“Like many of our peers, PepsiCo is on a journey from awareness to commitment to action,” said Ramon Laguarta, PepsiCo’s Chairman and CEO. “I am proud to say that our commitment to equity and inclusion is stronger today than at any time in our history. We understand that diversity of thought and experience gives us valuable strategic insights, fuels our innovation, and helps us attract the best talent. But even though I am proud of our progress, I know there is still more work to do. As we take the next steps on our journey, we will remain committed to the principles of diversity and transparency, whilst stepping up our action in partnership with employees, consumers, customers, and communities.”

PepsiCo’s diversity agenda, which has evolved from Diversity & Engagement to Diversity, Equity and Inclusion, is a step forward to unlock the organization’s ability to further innovate for its consumers, deliver first-class service for its customers, and cultivate a workforce that accurately reflects its communities.

The company shared progress in its 2020 DE&I Report, including the following highlights:

A space for People to be themselves:

  • Advancing Gender Parity globally with progress currently at 41%.
  • Increasing Black and Hispanic Representation, at 8% and 9% respectively, PepsiCo is on track to meet the goal of increasing managerial representation in the U.S. to 10% by 2025 in order to mirror workforce availability.
    • This goal is part of PepsiCo’s Racial Equality Journey, an investment of more than $570+ million over five years to uplift Black and Hispanic communities in the U.S. while also increasing representation of those respective communities within PepsiCo.

A space for Business partners to progress:

  • Investing in diverse suppliers by expanding existing supplier base and growing the spend by more than $35M incrementally in 2021 with Black and Hispanic suppliers.
  • Amplifying Diverse Voices with the launch of products and campaigns, including eQlibri® Popcorn in Brazil, a product designed by women for women and featuring women in its advertising. The brand’s “Estoure-se” campaign encourages women to transform and share the best of themselves. In Mexico, Doritos Rainbow created the 1 Million Kisses digital campaign and donated $50,000 to Cuenta Conmigo, an organization that provides programs and services that improve the lives of LGBTQ+ people and their families.

A space for Communities to thrive:

  • Unlocking opportunities & cultivating future talent like The PepsiCo Foundation’s partnership with Amal Academy, a leading nonprofit organization seeking to close the employment gap in Pakistan by helping graduates build bridges to their dream jobs through soft skill trainings and job placement. To date, 3,300+ youth have been positively impacted, with 80% job-offer rate. Additionally, the company offered virtual internships to 300 students, half of which were women.
  • Meeting the needs of our local communities with the investment of more than $71 million and working with 250+ partners to bring food and other vital resources to global communities most impacted by COVID-19. As part of this effort, funding was used to provide for protective gear for healthcare workers, testing and screening services, and the distribution of 145+ million nutritious meals to at-risk populations.

“PepsiCo’s Diversity, Equity and Inclusion agenda is more critical than ever following a year of such adversity that disproportionately affected underserved populations,” said Tina Bigalke, PepsiCo Global Chief Diversity, Equity and Inclusion Officer. “I am proud of the progress we’ve made so far and equally motivated to continue pushing us to drive measurable impact and meaningful change.”

The all-digital and interactive 2020 DE&I Report includes a snapshot of PepsiCo’s diversity journey, pillar focus areas, progress against goals and other resources. The report and downloadable assets are available here.

Atlanta Businesses Hailed as 2021’s Best & Brightest Companies to Work For

By
Brad Kadrich
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Every year, companies throughout the greater Atlanta region compete to be named one of “Atlanta’s Best and Brightest Companies to Work For.”

Only companies that distinguish themselves as having the most innovative and thoughtful human resources approach can be bestowed this honor.

An independent research firm evaluates each company’s entry, based on various categories, including Compensation, Benefits and Employee Solutions; Employee Enrichment, Engagement and Retention; Employee Education and Development; Recruitment, Selection and Orientation; Employee Achievement and Recognition; Communication and Shared Vision; Diversity and Inclusion; Work-Life Balance; Community Initiatives and Strategic Company Performance.

The 13 elite winners are selected based on their overall high scores and then named an elite winner in their highest performing category. Elite winners included:

Communication and Shared Vision
CBIZ

Community Initiatives
Turner Construction Company

Compensation, Benefits and Employee Solutions
OnSolve

Diversity and Inclusion
T-Mobile USA

Employee Achievement and Recognition
ASP Global

Employee Education and Development
WellStar Health System

Employee Enrichment, Engagement & Retention
Amerisure Mutual Insurance

Recruitment, Selection and Orientation
PBD Worldwide

Work-Life Balance
Human Resources Dimensions

Strategic Company Performance
iVision Inc.

The Best of the Best Small Business
SignatureFD LLC

The Best of the Best Medium Business
OxBlue

The Best of the Best Large Business
Panasonic Automotive

“These companies have shown fortitude during this crisis and have inspired others to make critical decisions for the betterment of their teams” said Jennifer Kluge, president of The Best & Brightest Companies To Work For. “They focus on the needs of their employees as a primary objective, even in times like this and are the leaders of our West Michigan community.”

With over 20 years of experience conducting the Best and Brightest competitions, the National Association for Business Resources (NABR) has identified numerous best Human Resource practices and provided benchmarking for companies that continue to be leaders in employment standards.

Here’s a shout-out to the other Atlanta winners:

1Q

3C Software

3CI

Advanced Services for Pest Control Inc.

Agile

AGS

Amerisure Mutual Insurance Company

AmTrust Financial

Aquesst

ASP Global

Aspirent

Astral Brands

Aventis Systems Inc.

BDO USA LLP

BlueFetch Mobile

CATMEDIA

CBIZ

CHEP

City of Atlanta

Clean Hands

Client Command

Clinical Resources

Collaborative Solutions

Comprehensive Therapy Consultants

Consulting Solutions

Cox & Company

Cultura Technologies LLC

Dana Lynch Design

Daugherty Business Solutions

Digital Agent

Digitas

DMC Atlanta, Inc.

Emerald Data Networks, Inc.

EventSphere, LLC

FieldEdge

Gables Residential

GetUWired

Goodwill of North Georgia, Inc.

Gray Television

Greenzie

Hall Booth Smith P.C.

Hancock Askew & Co., LLP

Homeside Properties, an Associa Company

HR Partners, Inc.

Human Resources Dimensions

IDR, Inc.

Imagine Media Consulting

Incentive Solutions, Inc.

InfoMart, Inc.

IST Management Services, Inc.

IT Works Recruitment

iVision

Jabian Consulting

Kingdom Fortunes Development Group

KMS Technology

Kobiton

LeadCoverage

Liger Partners

List Partners, LLC

Media Frenzy Global

Medicus IT

MHP America, Inc., a Porsche Company

Morrison Healthcare

MountainSeed Appraisal Management, LLC

OmegaFi

One Vision Production LLC

OneDigital

OnSolve

Origami Risk

OxBlue Corporation

Panasonic Automotive

Paramount Software Solutions Inc.

Park N Fly

PBD Worldwide

Perry Construction Management LLC

Pro Roofing & Siding

ProviDyn, Inc.

Quest Group

Radix Health

ReluTech

REPLI

Riskonnect

Rural Sourcing Inc.

Service Express, Inc.

SignatureFD, LLC

SolTech, Inc.

Strive Consulting

Sunsoft Solutions Inc.

Techwood Consulting

TelPlus Communications

The Intersect Group

TJFACT, LLC

T-Mobile USA

Tommy Nobis Center

Total Quality Logistics

Turner Construction Company

VDart

Vector Choice Technology Solutions

Vector Global Logistics

Vert Digital

vidREACH

WellStar Health System

Willmer Engineering

WOW!

X3 Sports

XINNIX, Inc.

“Throughout the year, the Best and Brightest Companies to Work For have demonstrated leadership and forward thinking as they pivoted their business and workforce through Covid-19,” Kluge said. “As the conversation and focus has shifted, our Best and Brightest winning companies have also been a voice for important actions regarding race relations and employee wellbeing. In these unique times, the Best and Brightest Companies to Work For excel and share their knowledge with others.”

Businesses Honored as Chicago’s Best & Brightest to Work For

By
Brad Kadrich
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Every year, companies throughout the greater Chicago region compete to be named one of “Chicago’s Best and Brightest Companies to Work For®.” Only companies that distinguish themselves as having the most innovative and thoughtful human resources approach can be bestowed this honor. (See following list for winners.)

An independent research firm evaluates each company’s entry, based on various categories, including Compensation, Benefits and Employee Solutions; Employee Enrichment, Engagement and Retention; Employee Education and Development; Recruitment, Selection and Orientation; Employee Achievement and Recognition; Communication and Shared Vision; Diversity and Inclusion; Work-Life Balance; Community Initiatives and Strategic Company Performance.

With over 20 years of experience conducting the Best and Brightest competitions, the National Association for Business Resources (NABR) has identified numerous best Human Resource practices and provided benchmarking for companies that continue to be leaders in employment standards.

The Best of the Best overall elite category Chicago winners this year included:

Overall Winner
Shure

Medium Business
Milhouse Engineering & Construction Inc.

Small Business
Porcaro Stolarek Mete Partners

Communication and Shared Vision
Devbridge

Community Initiatives
KRD, Ltd.

Compensation, Benefits and Employee Solutions
Assurance, a Marsh & McLennan Agency

Diversity and Inclusion
Comcast

Employee Achievement and Recognition
Turner Construction Company

Employee Education and Development
Dialog Tech

Employee Enrichment, Engagement and Retention
OneDigital

Recruitment, Selection and Orientation
Stout

Strategic Company Performance
LaSalle Network

Work-Life Balance
FONA International Inc.

“The Best and Brightest is a powerful community of elite leaders who share ideas and practices, and have proven they are employers of choice,” said Jennifer Kluge, President and CEO, Best and Brightest Programs. “Best and Brightest winning companies have also been a voice for important actions in creating a sustainable culture that works, ensuring the wellbeing of their employees come first.”

These select companies are set to be honored on Thursday, July 22, on a virtual platform.

Chicago’s Best and Brightest Companies to Work For is sponsored by Baudville Brands, Now Health Group, FONA International, Corp! Magazine, Assurance, a Marsh & McLennan Agency, Milhouse Engineering & Construction, Sana Benefits, HR Source and Become Unmistakable – uMap.

The Best and Brightest Companies to Work For is a national program that celebrates those companies that are making better business, creating richer lives and building a stronger community as a whole. It is presented annually in several markets, including Atlanta, Boston, Charlotte, Chicago, Dallas/Fort Worth, Denver, Detroit, Houston, Miami, Milwaukee, Nashville, New York, Portland, San Diego, San Francisco Bay Area, Seattle, West Michigan and Nationally.

Nominations are now being accepted for 2022. Visit www.thebestandbrightest.com to obtain an application.

Here’s a shout-out to all the winners:

Above and Beyond Family Recovery Center

Adage Technologies

American Academy of Orthopaedic Surgeons

American Academy of Pediatrics

American Society of Anesthesiologists

ARCO/Murray

Ascend Technologies

Associa – Chicago

AST Corporation

Automated Business Designs

BCD International

BDO Digital

BDO USA LLP

Bluco

Brilliant

Brose Belvidere

Burwood Group Inc.

bswift

Call One

CapGrow Partners

Capsim Management Simulations

CBIZ

City Staffing

CKL Engineers LLC

Coast Incorporated

Collaborative Solutions LLC

Coplan & Crane LLC

CoreFX Ingredients

CoSourcing Partners LLC

Daugherty Business Solutions

Digital Third Coast

Donlen,

DragonSpears

Ecentria Group

Echo Global Logistics, Inc.

Echogravity

Edlong

Emkay Inc

Entara

Ergoseal, Inc.

Evention LLC

FBC Remodel

Flexco

Framework IT

Fusion92

Genesis Technologies

Ghafari Associates, LLC

Healthscape Advisors

HED

Helping Hand Center

Healthcare Financial Resources Inc

Home Run Inn, Inc.

Honigman LLP

HydraForce Inc.

Illinois Housing Development Authority

Impact Networking LLC

Incredible Technologies

International Contractors Inc.

Jabian Consulting

Kensington School

Kforce Professional Staffing

Lakeshore Recycling Systems LLC

Loberg Construction

Loma Systems

MedGyn Products, Inc.

Merchants Fleet

Mortenson Construction

Motivation Excellence

Mutual Trust Life Insurance Company

National Equity Fund Inc.

National Futures Association

Navigate

Neighborhoods.com

Netrix LLC

Network Distribution

Next College Student Athlete (NCSA)

Nitel

NOW HEALTH GROUP, INC.

nvisia

Objective Paradigm

Office Revolution

Omron Automation

Omron Healthcare Inc.

Origami Risk

Parasol Alliance

Paylocity Corp.

PBD Worldwide

Peapod Digital Labs

Per Se Group

Perficient

Phaidon International

Plexus Corp.

Premier International

Prominence Advisors

Protiviti

Rabine Group

Radio Flyer Inc.

RATIONAL Cooking Systems, Inc.

Red Caffeine

Riskonnect, Inc.

Royal Cyber

Saggezza Inc.

Salo

Service Express

Shop Smart, LLC

Signature Bank – Chicago

Soliant Consulting

Soulsight

Starcom USA

Stout

Strive Consulting

Swoon

The Dagaz Group

The Marketing Store Worldwide

The Mx Group

The Pepper Group

The Salem Group

Thresholds

Total Quality Logistics

Tovar Snow Professionals LLC

TransTech, Inc.

Trilogy Behavioral Healthcare

Trilogy Real Estate Group, LLC

Turner Construction Company

Verve, a Credit Union

Videojet Technologies Inc.

Wespath Benefits and Investments

Wheels, Inc.

Wi-Tronix, LLC

WOW! Internet and Cable

Zeigler Auto Group

Canada Set to Open Border to U.S. Aug. 9, but U.S. is Waiting Until Aug. 21

By
Brad Kadrich
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Travelers who thought the U.S.-Canada border would be flowing both ways will have to wait a bit longer.

Days after the Canadian government announced it would begin allowing vaccinated Americans with a negative coronavirus test to come into the country beginning Aug. 9, the U.S. Customs and Border Patrol said it was extending its reopening date until Aug. 21.

The USA Today reported the decision was contained in documents set to be published in the Federal Register. Restrictions on entry by land and ferry travel are extended until 11:59 p.m. on Aug. 21 and will remain in place unless rescinded or amended, according to the notices.

Restrictions on crossing northern and southern U.S. borders were put in place in March 2020, and have been extended every month since then.

Canada announced the reopening of its borders to U.S. residents on Monday, effective Aug. 9. Canada will then begin allow fully vaccinated visitors from other countries to enter the country beginning Sept. 7.

U.S. Sen. Patrick Leahy, a Democrat from Vermont, told the Bennington Banner welcomed the news from Canada.

“I believe it is important for us to follow Canada’s lead and reopen our side of the border to fully vaccinated Canadians for non-essential travel purposes,” Leahy said. “Our Congressional delegation called for a resumption of greater cross-border travel in the beginning of June and we will continue to call for a safe reopening of the Northern Border until that is accomplished.”

U.S. Rep. Brian Higgins, a Democrat from Buffalo, N.Y., was not happy with the U.S. decision to wait.

“For months now people and businesses along the border have been strung along month after month holding out hope for the border to reopen,” Higgins told the Buffalo media. “Today’s decision by the Biden administration harms economic recovery and hurts families all across America’s northern border; this is completely unnecessary.”

These new rules apply to travelers arriving by land and air. 

“As of September 7th, fully-vaccinated people from any country can come into Canada for non-essential travel,” Canadian Prime Minister Justin Trudeau tweeted after the announcement was made. “As a first step, fully-vaccinated Americans can do the same starting August 9th. At every step, the safety of Canadians will continue to be our top priority.”

Yahoo News reported that fully vaccinated travelers to Canada must prove their inoculation and present a negative molecular coronavirus test taken within the past 72 hours. However, those travelers will no longer be required to test after arrival in Canada, though some travelers will be randomly selected to do so.

Canadian airports are also continuing to require masks, according to the announcement, and many places in Canada are still enforcing mask mandates. Unvaccinated travelers will still not permitted to enter Canada.

People from Canada and Mexico have been allowed to fly into the U.S. with proof of a negative coronavirus test or recovery from COVID-19 – a requirement before boarding any international flight to the U.S., since January.

The news comes as vaccines continue to roll out across the three countries and COVID cases rise with the Delta variant of the virus spreading, accounting for 83% of U.S. COVID cases.

State House Votes to Repeal Emergency Powers Law Used by Whitmer During Pandemic

By
Brad Kadrich
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If Michigan Gov. Gretchen Whitmer feels a need to impose new restrictions in the face of the coronavirus pandemic, she’s going to have to find another way.

The Republican-controlled state House voted 60-48 — along party lines — in support of initiative petition language that repeals the Emergency Powers Act of 1945. The vote came one week after the state Senate also approved the initiative. 

Whitmer used the law to issue health and safety restrictions in the early days of the COVID-19 pandemic. Those moves drew drew pushback from Republicans and other opponents.

State House Speaker Jason Wentworth said the group that brought the petition, Unlock Michigan, “changed Michigan forever when they decided they had enough and stood up to make a difference.” 

“They deserve a state government that is willing to do the same,” Wentworth, of Farwell, said in a statement, according to The Detroit News. “They’ve earned that much. That’s why we had their back today and put this petition into law.”

Keep Michigan Safe spokesperson Mark Fisk on today’s vote by the Michigan House repealing the governor’s emergency powers.

“From Day One, Unlock Michigan has been a brazen political power grab designed to hamper the abilities of those in government to act quickly and decisively during public health emergencies,” Fisk said. “Today, House Republicans voted to eradicate an important tool for elected leaders trying to save lives and stop the spread of deadly, infectious diseases like COVID-19, Legionnaire’s, tuberculosis and anthrax.”

Whitmer and her administrative have used other laws to battle health emergencies, but this initiative process outlines a playbook for conservatives to take future action in a way that avoids a veto. 

Unlock Michigan praised Wednesday’s vote and promised additional campaigns. 

“Our Unlock Michigan citizen army collected over 540,000 signatures in just 80 days,” Unlock Michigan spokesman Fred Wszolek told The News. “Now, 292 days later, we’ll complete our mission with a final vote in the Legislature to end Gov. Whitmer’s rule by decree.”

Experts: FCA Expansion Shows How Tax Incentives Can Pay Off

By
Michael Gerstein
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Politicians on both sides of the aisle have applauded Fiat Chrysler Automobiles NV for vowing to build the first new auto assembly line Detroit has seen in decades, promising to hire 6,500 new workers and invest $4.5 billion into production plants.

As part of the deal, the Michigan Strategic Fund in 2019 approved more than $200 million in tax incentives to encourage FCA to make the expansion in state. Between all state and local economic incentives offered, the number is reportedly closer to $400 million.

Two years later, was it worth it? That depends on who you ask. For many in the business community and the city of Detroit, the answer is a resounding yes.

According to Stellantis spokeswoman Jodi Tinson, the company has hired 2,100 Detroiters to fill a total of 3,850 new jobs at the former Mack Avenue Engine Complex. In 2020, FCA announced that it hired 4,100 Detroit residents for the Mack expansion and an updated Jefferson North Assembly plant that would create a combined 4,950 jobs, according to the Michigan Economic Development Corporation.

That’s in line with the 4,950 jobs the company vowed to create with the help of state-funded financial incentives to sweeten the deal, a 2019 MEDC document shows.

“We value our state and local partners, Tinson said in a statement. “Their support has been critical in bringing $4.5 billion in investment and nearly 6,500 new jobs to Michigan.”

But where are the other 2,400 jobs to make up the difference from the 4,100 hired to meet the 6,500 promised? Tinson said in an email that more hires will be made when new jobs are available at FCA’s Jefferson North Assembly and Warren Truck Assembly plants.

Josh Hundt, MEDC’s chief business development officer and executive vice president, said the company continues to make good progress on hiring the remaining jobs. Hundt said the investment in Detroit and Michigan “represents that Michigan remains the center of the North American automotive industry” with 21 percent of all automotive production happening in Michigan and about 76 percent of all research and development.

The Fiat Chrysler expansion in particular means “thousands of good paying jobs in Detroit and Macomb County that will be … a great job opportunity for many years to come,” Hundt added.

Detroit Mayor Mike Duggan also has continued to extend his gratitude to the company for investing in Detroit. The Michigan Chamber of Commerce says the deal has absolutely been worth it.

“$4.5 billion of investment is unprecedented, and the first new assembly line in Detroit in 30 years — bringing 6,500 jobs prioritizing Detroit employment,” said Dan Papineau, director of tax policy and regulatory affairs for the Michigan Chamber of Commerce. “The local government, state government and FIAT Chrysler worked harmoniously together to put together an excellent plan. That looks like a win for us.”

But while the skeptics were few and far between for FCA’s 2019 deal, some were and remain leery. 

Every year, states and cities across the country give a combined $80 billion in economic incentives to companies, according to Nathan Jensen, a professor of government with the University of Texas at Austin.

Usually that comes in the form of grants, tax breaks and infrastructure or land. But most of the time, companies would have invested when and where they did anyway, according to Jensen. In cases where they alter investment decisions, Jensen contends communities often overpay — usually for political gain: Tax credits are an easy and effective public relations move for politicians, Jensen said.

But even if it pads elected officials’ public image, tax incentives can actually hurt the economy in the long run, critics like Jensen contend. That’s because the public investments that really help the economy are less flashy than a ribbon cutting ceremony: public education, childcare, workforce development and public infrastructure.

The conservative Mackinac Center for Public Policy, W.E. Upjohn Institute for Employment Research and the Center for Economic Accountability have in the past all been skeptical of how worthwhile tax incentives really are. They’ve questioned the notion that companies wouldn’t have expanded if not for those incentives, as is often argued by supporters and companies themselves.

It’s one of the few issues the far left and far right often agree on, Jensen said. More moderate Republicans and Democrats often support tax breaks and credits without hesitation.

According to a 2018 paper authored by Timothy Bartik, an economist with the Upjohn Institute, 75 percent of companies would make the same decision with or without the incentive.

“Based on a review of 34 estimates of ‘but for’ percentages, from 30 different studies, this paper concludes that typical incentives probably tip somewhere between 2 percent and 25 percent of incented firms toward making a decision favoring the location providing the incentive,” an abstract of the paper said. “In other words, for at least 75 percent of incented firms, the firm would have made a similar decision location/expansion/retention decision without the incentive.”

A 2010 report from the East Lansing-based Anderson Economic Group concluded that there’s a wide variance in which public business subsidies were effective and which weren’t. Some worked, many did not, according to the report.

But AEG Public Policy & Economic Analysis Director Brian Peterson said in an email “Michigan’s incentive landscape may look much different now than it did a decade ago.” AEG conducted a more recent analysis of Michigan incentives but declined to share it because it was produced for a private client.

The Chamber’s Papineau argued that while Michigan used to have some ineffective incentives, that isn’t the case anymore.

Sandy Baruah, president and CEO of the Detroit Regional Chamber, said incentives are only one reason that a company would choose to expand in or relocate to a given area. Other factors are often more important: the workforce, supply chain and overall tax burden are often bigger reasons.

Incentives certainly “are factored into overall cost of ongoing business” for a company, Baruah said.

“It would be unfair to say that an investment like the FCA investment would have gone to any of the 50 states or any part of the country,” Baruah said. “Clearly there are a lot of areas that wouldn’t be even in the running.”

Charles Ballard, a Michigan State University economics professor, said he didn’t know enough about the FCA incentive package to comment on it specifically.

“Overall, my sense of the research is that tax-incentive schemes have mostly had disappointing results. Companies are fond of telling state and/or local governments that they will only invest in a particular project if they receive a package of incentives,” Ballard said.

“However, in many cases, the companies would have made the investment anyway, even without the incentives, and the actual boost to employment often falls short of what was promised,” he added. “On the other hand, in this case, the requirement to hire Detroit residents probably did lead to the hiring of more Detroiters than would have happened otherwise.”

West Michigan Businesses Honored as the Best and Brightest

By
Brad Kadrich
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Hundreds of businesses around West Michigan are doing good work in developing human relations best practices.

At the annual “West Michigan’s Best and Brightest Companies to Work For” digital awards celebration held Wednesday, not only were dozens of winning companies recognized, but 13 Elite winners were also honored.

Representing 13 different award categories, this distinctive awards competition is presented annually by the Best and Brightest Companies to Work For.

The winners are selected based on their overall high scores and are then named an Elite winner in their respective category.

The most prestigious award, the “Best of the Best, Large Business” was presented to Davenport University, which demonstrated excellence in all categories. Davenport University stood above all of this year’s entries with exceptional human resources practices. The company outranked all of the competing companies in every category used to evaluate the winning entries.

The 13 elite winners are selected based on their overall high scores and then named an elite winner in their highest performing category. Elite winners included:

Communication and Shared Vision
Air Lift Company

Community Initiatives
4front Credit Union

Compensation, Benefits and Employee Solutions
L3Harris Technologies, Inc.

Diversity and Inclusion
Suburban Inns

Employee Achievement and Recognition
Greenleaf Trust

Employee Education and Development
Greenleaf Hospitality Group

Employee Enrichment, Engagement & Retention
Buist Electric

Recruitment, Selection and Orientation
TowerPinkster

Work-Life Balance
OST (Open Systems Technologies)

Strategic Company Performance
Seaman’s Mechanical

The Best of the Best Small Business
Andy J. Egan Company

The Best of the Best Medium Business
Consumer Credit Union

The Best of the Best Large Business
Davenport University

“These companies have shown fortitude during this crisis and have inspired others to make critical decisions for the betterment of their teams” said Jennifer Kluge, president of The Best & Brightest Companies To Work For. “They focus on the needs of their employees as a primary objective, even in times like this and are the leaders of our West Michigan community.”

Nominated companies are assessed by reviewing a number of key measures in each category. Each company’s entry was evaluated by an independent research firm.

Here’s a shout-out to the rest of the West Michigan winners:

4front Credit Union

a.j. Veneklasen, Inc.

ABD Engineering & Design, Inc.

Adamy Valuation

Adventure Credit Union

AEBetancourt

Air Lift Company

Allied Business Services

Allied Electric, Inc.

Amerifirst Home Mortgage

Andy J. Egan Co

Arbor Financial Credit Union

Armstrong International

Baker Holtz, CPAs and Advisors

Barnes & Thornburg LLP

Baudville Brands

BDO USA LLP

Beene Garter, LLP

Behler-Young Company

Bell’s Brewery Inc.

BHS Insurance

BizStream

BKC | Brink, Key & Chludzinski, P.C.

Blue Cross Blue Shield of Michigan

Buist Electric Inc.

Butterball Farms Inc.

CasterDepot

Charter Capital Partners

Choice Schools Associates

CHOP Tree Service

Clark Retirement Community

Comfort Research

Consumers Credit Union

Crystal Mountain

CTS Telecom

Davenport University

DeWys Manufacturing Inc.

DFCU Financial

Dominion Systems, Inc.

Easter Seals of Michigan

Eckert Wordell

Emmanuel Hospice

Epitec

EQI, Ltd

EV Construction

Express Employment Professionals- West Michigan

Family Promise of Grand Rapids

Fettig

Feyen Zylstra

Fleis & Vandenbrink Engineering Inc.

Flexco

Flexfab LLC

Flow-Rite Controls

Foresight Management

Forest Area Credit Union

Garrison Dental Solutions

Gerald R. Ford International Airport

Ghafari Associates, LLC

GMB Architecture + Engineering

GNS Holland, Inc.

Grand Rapids Metrology

Grand River Aseptic Manufacturing

Greenleaf Hospitality Group

Greenleaf Trust

GT Independence

Gun Lake Casino

Harbor Industries, Inc.

Hastings Mutual Insurance Company

Heritage Community of Kalamazoo

Highpoint Community Bank

Holland Hospital

Honigman LLP

Hope College

Humanex Ventures

Hungerford Nichols CPAs + Advisors

Hutcherson Construction

Industrial Magnetics Inc.

InsITe Business Solutions LLC

ITC Incorporated

ITPartners+

ITS Partners

Kalamazoo Community Foundation

Kevin Toler & Associates

Kids’ Food Basket

Knight Watch Inc.

Koops Inc

KSS Enterprises.

Lachman Stuart

LaFleur

Lake Michigan Credit Union

Lakeshore Advantage

Lakewood Construction

Legacy Trust

Legal Copy Services Inc.

Life EMS Ambulance

Lighthouse an Alera Group Company

Macatawa Bank

Mel Trotter Ministries

Mercantile Bank of Michigan

Metro Health University of Michigan Health

Michigan First Credit Union

Michigan Software Labs

Mill Steel Company

MSU Federal Credit Union

New Holland Brewing Company

Northpointe Bank

Nugent Builders Inc.

Nulty Insurance

OMNI Community Credit Union

OptiMed Health Partners

OsborneKlein

OST (Open Systems Technologies)

PADNOS

Paragon D&E

Pella Windows & Doors by Horne

Plante Moran

Progressive AE

Rehmann

RENK America

Revel

Ritsema Associates

Robroy Enclosures

Rockford Construction

Schupan & Sons, Inc.

Seaman’s Mechanical

Seber Tans PLC

SecurAlarm Systems, Inc.

Seelye Auto Group

Service Express

Service Professor, Inc.

SHEFIT

Sherpack

Soils & Structures

Southwest Michigan First

SpartanNash

SpendMend, LLC

St. Ann’s Home

Star Truck Rentals

Suburban Inns

Sun Title Agency

Sunset Retirement Communities & Services

TANDEM365

Terryberry

TGG Solutions

The C2 Group

The Kendall Group

The Wiser Financial Group

Think Chromatic

Total Quality Logistics

TowerPinkster

Town & Country Group

Triangle Associates, Inc.

Trillium Staffing Solutions

Twisthink

UFP Technologies

UMRC & Porter Hills

United Bank

Vanderwall Brothers Concrete Products

West Michigan Transport, LLC

West Michigan Whitecaps

Windemuller

Wolverine Building Group

Worksighted

WSI

Yeo & Yeo CPAs & Business Consultants

Zeigler Auto Group

“Throughout the year, the Best and Brightest Companies to Work For have demonstrated leadership and forward thinking as they pivoted their business and workforce through Covid-19,” Kluge said. “As the conversation and focus has shifted, our Best and Brightest winning companies have also been a voice for important actions regarding race relations and employee wellbeing. In these unique times, the Best and Brightest Companies to Work For excel and share their knowledge with others.”

West Michigan’s Best and Brightest Companies to Work For is sponsored by Baudville Brands, Blue Cross Blue Shield of Michigan, Newsradio WOOD 1300 and 106.9 FM, Grand Rapids Business Journal, Davenport University, DTE Energy, Marsh & McLennan Agency LLC, The Employers’ Association, Consumers Credit Union, Meijer, uMap, Clark Hill, Corp! Magazine, Garrison Dental, SpartanNash, OMNI Community Credit Union, Basic, NOW Health

The Best and Brightest Companies to Work For is a program that provides the business community with the opportunity to gain recognition, showcase their best practices and demonstrate why they are an ideal place for employees to work. It is presented annually in several markets including Atlanta, Boston, Chicago, Dallas, Detroit, Houston, Milwaukee, San Diego, San Francisco Bay Area, West Michigan and Nationally. Nominations are now being accepted. Visit www.thebestandbrightest.com to obtain an application.

MI Small Business Summer Tour Touts Efforts to Invest in Small Businesses, Jumpstart the Economy

By
Press Release
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LANSING, Mich. – Governor Gretchen Whitmer this week kicked off the MI Small Business Summer tour. The governor announced she and her cabinet members will visit and recognize Michigan’s small businesses that have shown resiliency throughout the COVID-19 pandemic and who she says are “the backbone of our communities.”

According to information provided by the state, the state’s dozens of economic relief programs for businesses supported more than 25,000 companies and retained more than 200,000 jobs throughout the pandemic.

The state of Michigan is already seeing promising results from the economic policies and COVID mitigation measures that have helped small businesses and working people recover from the pandemic:

  • Michigan’s economy grew 7.6% in the first quarter of 2021, the best in the Midwest, higher than the national average, and among the top 10 states nationwide. 
  • An independent analysis from the financial publication Credible states that our economic recovery is the 2nd strongest nationwide. 
  • The financial ratings agencies Fitch Ratings and S&P Global Ratings recently improved Michigan’s credit rating outlook, affirming that Michigan is headed in the right direction and saving taxpayers money by lower borrowing costs for upcoming bond issues.   
  • New projections show the state’s revenue outlook increasing by nearly $6.5 billion — from a $3 billion deficit to a $3.5 billion surplus. 
  • Michigan’s unemployment rate is nearly one point lower than the national average as more Michiganders get back to work.   

“As we continue to put Michigan’s economy first, I’m laser focused on getting small businesses the support they need and creating jobs,” Whitmersaid. “Our dedication to small businesses is fueled from hearing from the small businesses themselves. From hosting a series of small business summits with Lt. Gov. Gilchrist to our recent Jobs and Economy town hall, we have been hearing what small businesses need directly from those who need it most. These conversations ensure that our economic recovery is strong and meets the needs of Michiganders across the state as we put Michigan back to work.” 

The Michigan Department of Labor and Economic Opportunity (LEO) launched the Michigan.gov/SmallBusiness site to help Small Businesses navigate state programs and services available to help them not only recover, but grow and thrive in the years to come. Additional programs aimed at helping employers fill job openings and provide safe, healthy work environments for employees can be found at Michigan.gov/BackToWork.  

“To date, we have supported tens of thousands of small businesses, keeping millions of Michiganders hard at work while investing billions of dollars back into the economy,” Lt. Gov. Garlin Gilchrist said. “But we can’t stop there. As we continue setting a course for economic recovery, we need additional efforts to stabilize, recover and ultimately grow the economy in Michigan to build on the foundation of support and relief we have already administered statewide.” 

In addition to the June statewide virtual small business summit and in-person Detroit Small Business Summit, the State of Michigan is bringing together small businesses, state and local policymakers, regional economic development leaders, banks and credit unions, business owners and community organizations to collect feedback through regional small business summits and other outreach events to learn how to best create policies and program to continue to support small businesses.    

The next event will take place in Grand Rapids on July 19 from 3 – 5 p.m. at the Downtown Market Grand Rapids. Additional regional and industry-specific events are in the process of being scheduled. To register and for more information, visit the online Small Business Summit meetings site. 

With the large boost in state revenues announced at the May Consensus Revenue Estimating Conference, Michigan is in a strong position to make large investments that can transform the state and help residents and businesses recover from the pandemic.   

With billions in funding from the American Rescue Plan and $176 million in federal State Small Business Credit Initiative funds coming our way in addition to a large influx of state revenue, this is a moment in Michigan’s history that can deliver real and lasting positive outcomes for the state. 

This unprecedented amount of funding creates an unmatched opportunity for investment in our state. 

“We need to ensure businesses have what they need to succeed because a recovery without robust business investment and involvement will be incomplete,” Whitmer said. “With additional state revenues expected and billions of dollars in incoming federal funding, Michigan is in a strong position to make investments that can transform the landscape for small businesses so they can thrive and create jobs.”

Whitmer’s economic jumpstart for small businesses proposals included:

  • Putting $300 million into the Michigan Mainstreet Initiative. 
  • Michigan Small Business Restart Program will invest $100 million to help restaurants and other place-based businesses cover costs by providing grants up to $20,000 for mortgage, rent, taxes, payroll and other operating expenses. The plan will set aside $25 million for small businesses with less than nine employees, which is over half of Michigan businesses and a high proportion of women and minority-owned businesses.
  • Michigan Small Business SmartZones & Business Accelerator & Resiliency Initiative would invest $75 million to provide grants to startups that can help our communities thrive. The plan would create the Small Business Support Network and Small Business Fund to support traditional commercial corridor/Main Street businesses and provide opportunities for new businesses. 
  • Michigan Microenterprise Support Initiative would invest $125 million to provide grants for businesses that did not qualify or apply for other incentives, like the federal Paycheck Protection Program. The plan would work with community development financial institutions to provide loans to rural businesses or other businesses with less than nine employees that struggled to access capital through traditional programs. 

In addition to the suite of proposals dedicated to small business and restaurants laid out in Governor Whitmer’s Economic Jumpstart Plan, throughout the pandemic, the state has implemented 23 economic relief programs for businesses, supported more than 25,000 companies and retained more than 200,000 jobs.  

For more information and to find resources for Small Businesses at Michigan.gov/SmallBusinesses.

Oakland County Commits Nearly $4 Million in Relief for Residents Most Impacted by COVID-19

By
Brad Kadrich
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PONTIAC – Nearly $4 million in rent, mortgage, and utility assistance is available for qualified Oakland County residents whose payments are overdue because of hardship from the COVID-19 pandemic.

The Oakland County Neighborhood and Housing Development Division is currently accepting applications for this one-time grant at www.oakgov.com/RMU until all funds are gone.

“As we emerge from the dire health consequences of the COVID-19 pandemic, we know that economic recovery is just beginning for many of our neighbors,” County Executive Dave Coulter said. “This program is intended to provide assistance for basic housing needs which are fundamental for our residents to get back on their feet and feel secure moving forward.”

The Oakland County Executive and Oakland County Board of Commissioners have allocated $3.9 million in CARES Act money in this third round of rent, mortgage, and utility assistance to cover late gas, water, or electric bills or mortgage, rent, or association fees that are in arrears.

To qualify, applicants must meet the following criteria:

• Be a legal resident of Oakland County with a State of Michigan ID or license

• Have a household income less than 80 percent of the area median income, as defined by the U.S. Department of Housing and Urban Development (HUD)

• Have an inability to pay due to a temporary job loss, reduced work hours, or other income hardship that have been caused by COVID-19

• Have not received assistance from any other source for the same activity and period of time as requested through this program

• The bills must be connected to the applicant’s primary residence.

• The applicant’s landlord or mortgage company must agree to participate in the program.

There is no maximum benefit. Oakland County Neighborhood and Housing Development Division will review applications on a first-come, first-served, first qualified basis.

Applications are also available in Spanish, Hindi, Arabic, and Simplified Chinese and can be requested by contacting Oakland County Neighborhood & Housing Development Division at 248-858-0730 or [email protected].

The application can be completed online at oakgov.com/RMU. Applicants who do not have a computer or access to the Internet may pick up a hard copy of the application at the following locations or an application can be requested by contacting Oakland County Neighborhood & Housing Development Division at 248-858-0730 or [email protected]:

• Oakland County Neighborhood & Housing Development Division, 250 Elizabeth Lake Rd., Ste. 1900, Pontiac

• North Oakland Health Center, 1200 N. Telegraph Rd., Bldg. 34 East, Pontiac

• Novi 52-1 District Court, 48150 Grand River Ave., Novi

• South Oakland Health Center, 27725 Greenfield Rd., Southfield

• Brandon Township Clerk’s Office, 395 Mill St., Ortonville

Completed applications may be mailed or dropped off at the above locations.

Art & Apples Festival returns to Rochester Sept. 10-12, 2021

By
Guest Submission
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The Art & Apples Festival, produced by Paint Creek Center for the Arts, returns this year to Rochester Municipal Park from Sept 10-12, 2021. One of the nation’s top juried art fairs, this year more than 200 exhibiting artists from across the country were selected by a jury to display their works.

Michael Zehnder, Bavarian Inn Lodge, receives the CEC Richard G Kraft Award

By
Guest Submission
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Michael Zehnder, Bavarian Inn Lodge owner and general manager, was presented the CEC Richard G Kraft Jr. Award by Tonya Quackenbush, the Civic Events Council President. The award is given to those who go beyond the normal work expected of volunteers to help make the Bavarian Festival successful.

Senate Sets Vote on Bipartisan Infrastructure Plan, $3.5 Trillion Spending Package

By
Brad Kadrich
-

President Joe Biden had a private lunch with Senate Democrats this week in an effort to convince them to push a pair of controversial spending packages he’s trying to get through.

Next week, he’ll know how good the lunch was.

Senate Majority Leader Chuck Schumer said Thursday the Senate will begin voting on a $1 trillion, bipartisan infrastructure measure and a budget resolution that proposes an additional $3.5 trillion on social spending programs.

Announcing the plan on the Senate floor, Schumer was adamant.

“The (lunch meeting) was wonderful, the excitement was palpable and the opportunity to do so much good, for so many, was exciting,” Schumer said. “The time has come to make progress.”

The infrastructure bill will need 60 votes to proceed, meaning all 50 Democrats and at least 10 Republicans will have to vote for it.

The budget resolution only requires a simple majority to begin debate. Democrats can move ahead with the approval of all 50 lawmakers in their party plus the tie-breaking vote of Vice President Kamala Harris.

Republican opposition to the infrastructure plan because they don’t believe it can be done without adding to the nation’s debt. They also oppose tying it to the larger spending package, which has zero Republican support.

According to Reuters, Senate Republican Leader Mitch McConnell was quick to express his opposition to all the spending.

“With inflation raging … (the Democrats’ budget plan) is wildly, wildly out of proportion to what the country needs right now,” he told reporters.

According to NPR, the White House fact sheet says the infrastructure plan includes:

  • Transportation: $312 billion
  • Roads, bridges, major projects: $109 billion
  • Safety: $11 billion
  • Public transit: $49 billion
  • Passenger and freight rail: $66 billion
  • Electric vehicles: $7.5 billion
  • Electric buses/transit: $7.5 billion
  • Reconnecting communities: $1 billion
  • Airports: $25 billion
  • Ports and waterways: $16 billion
  • Infrastructure financing: $20 billion

·         Other infrastructure: $266 billion

  • Water: $55 billion
  • Broadband: $65 billion
  • Environmental remediation: $21 billion
  • Power, including grid authority: $73 billion
  • Western water storage: $5 billion
  • Resilience: $47 billion

Following the meeting with Biden, Sen. Chris Coons, a Democrat from Delaware, said Biden had the support of the entire Democratic caucus.

“It was encouraging to hear senators, some who ran against (Biden) for president, say very positive, very encouraging things,” Coons told MSNBC’s Andrea Mitchell. “This (infrastructure) package will literally be the single greatest investment in infrastructure in the history of our country.”

Spike in COVID-19 Cases Prompts Some Renewed Restrictions, Drives Push for Vaccinations

By
Brad Kadrich
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Los Angeles County has reinstituted mask requirements indoors, regardless of COVID-19 vaccination status.

Because COVID infections are rising in 49 of 50 states, Chicago officials said Tuesday that unvaccinated travelers from Missouri and Arkansas must either quarantine for 10 days or have a negative COVID-19 test.

And Tokyo is under another state of emergency even as the 2021 Olympics approach.

It’s all because COVID-19 deaths and cases are on the rise again, in the United States and globally.

For the first time in nine weeks, according to The Associated Press, the World Health Organization reported virus-related deaths rose last week. The WHO recorded more than 55,000 deaths, up 3% from the previous week. Cases rose 10% to nearly 3 million, according to the WHO.

In the U.S., with one of the highest vaccination rates in the world, the AP reported newly confirmed infections per day have doubled over the past two weeks to an average of about 24,000, though deaths are still on a downward trajectory at around 260 a day.

Los Angeles County, the country’s most populous county, reported its fifth straight day Tuesday of more than 1,000 new cases.

Experts are tying the surge to falling vaccination rates. While some 55% of U.S. residents have gotten at least one dose, the rates of vaccinations are dropping. The falloff prompted the White House to invite pop star Olivia Rodrigo to visit in an attempt to sway young people to get vaccinated.

The push is particularly important because experts are reporting that the majority of new cases are among the unvaccinated.

Some states – among them Michigan, Ohio, Oregon and Maryland – have begun using lottery-style cash incentives to entice residents to get vaccinated.

In Michigan, for example, the “MI Shot to Win Sweepstakes” gives Michigan residents who have already gotten at least the first dose of vaccination the chance to win more than $5 million and nine $55,000 college scholarships. Prizes will be handed through a lottery-style raffle.

“It’s an exciting opportunity for so many people in our state to do what they need to do to protect themselves and our communities, but also get an opportunity to get a big prize,” Gov. Gretchen Whitmer said. “It’s a great story of what happens when the public sector and the private sector and the philanthropic sector partner to solve a problem. We are up to this challenge, and this is a great tool to fight COVID.”

Ohio plans to announce another prize program to boost its vaccination rate, and Gov. Mike DeWine urged the government to give the vaccines full approval instead of just emergency authorization to ease people’s doubts.

“That will help us, in Ohio and across the country, to get more people vaccinated,” he said.

Experts: All Eyes Are On the Fed As It Contemplates Wind-Down of Asset Purchases

By
Press Release
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Dr. Robert Dye is senior vice president and chief economist for Comerica Bank.

At his last post-policy-meeting press conference on June 16, Federal Open Market Committee Chair Jay Powell said that the time for “talking about talking about” a wind down of Federal Reserve asset purchases was over.

In the official minutes from that policy meeting, released on July 7, we see confirmation that the Fed collectively is indeed talking about when and how to start decreasing asset purchases. These bond purchases, currently at the rate of about $120 billion per month, are helping to provide liquidity to financial markets and are putting downward pressure on interest rates. 

We expect to see a more active discussion within the FOMC about tapering asset purchases, along with more public commentary, at the upcoming FOMC meeting over July 27/28. In the upcoming commentary, we expect the Fed to confirm that they will begin to decrease the rate of asset purchase before the end of this year. Right now the window for the eventual start of tapering looks like it begins by the end of September and extends through the end of December.

If the Fed is concerned about an overheating economy and accelerating inflation, they could begin to taper by the end of September. They could use their annual Jackson Hole conference at the end of August to signal an end-of-September or October taper. If they feel less concerned about inflationary pressure, they could wait until the mid-September FOMC meeting to announce that they will begin to taper by the end of December. Much depends on how the Fed judges inflationary pressure. 

The minutes from the June FOMC meeting showed that the Fed staff near-term outlook for inflation was “revised up markedly.” Still, the staff outlook called for inflation to gradually decrease in the coming months as production bottlenecks and supply-chain constraints ease. But the staff at the Fed does not vote on policy actions. It is the committee participants, the Board of Governors and the regional Fed presidents, that vote on monetary policy.

In the minutes, meeting participants noted that the recent rise in inflation was more than they anticipated earlier this year. Several meeting participants (we don’t know exactly which ones) anticipate that supply chain limitations and input shortages will put upward pressure on prices into next year. Still, some participants noted that measures of longer-term inflation expectations had remained in ranges consistent with the Fed’s long-run inflation goal. 

Related to the debate within the Federal Reserve about inflation and asset purchases is Federal Reserve interest rate policy. We expect the Fed to follow the Bernanke playbook of a first-in/last out sequence for unwinding its policy tools. The first tool engaged to combat the depressive effects of pandemic-related social mitigation policy was dropping the fed funds rate to near-zero. The second tool utilized was asset purchases.

The third set of tools engaged were special programs. The Fed has already begun to unwind its special programs. They are discussing how to unwind asset purchases. We expect them to wait until they have established their game plan for winding down asset purchases before they turn their full attention to the timing and trajectory of interest rate lift-off from the zero lower bound. It is telling that in the minutes of the June FOMC meeting, several participants were concerned that low interest rates were contributing to elevated house prices and that high house prices might pose risks to financial market stability. 

For now, we feel comfortable maintaining our interest rate forecast of the last several months which shows a 25 basis point increase of the fed funds rate coming at the end of 2022 followed by another 25 basis point increase in early 2023. This timing would allow the Fed to gradually wind down asset purchases from the end of this year through mid next year, and then prepare financial markets for a rate hike by the end of next year. That said, we are mindful that the best laid plans (and forecasts) of mice and men often go awry. Much will depend on the persistence, breadth and velocity of the current surge in U.S. and global prices.

Robert Dye is vice president and chief economist for Comerica. Daniel Sanabria is senior economist for Comerica.

“Rework,” A must read…

By
Guest Submission
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The book Rework by Jason Fried & David Heinemeier Hansson will make you rethink a lot of what most assume is the standard way to do business. For me, it drove home a less conventional approach to running our structures for stores; a process that was much more lean, fluid and agile. -Nathan Hamood

AT&T Picked to Provide Connectivity Solutions for California Agencies, Education Institutions

By
Press Release
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The California Network and Telecommunications Program awarded AT&T contracts for 16 new service categories to provide connectivity and technology products to California state and local agencies.

Under these new contracts, AT&T will deliver a comprehensive portfolio of cost-effective solutions that will modernize the agency’s operations and help make California communities safer, smarter and stronger.

California is the third largest state by area and the most populous state in the country with different solution needs for each agency. With CALNET, state and local government agencies can go through a streamlined process to select AT&T solutions that meet their individual requirements.

“We’ve worked with the CALNET program for over two decades and proudly share in their mission to provide reliable solutions to state and local agencies throughout the State of California,” said Brian Troup, vice president, Public Sector for AT&T. “We look forward to continue working with them to enhance and expand solutions for state and local government organizations and help them support their communities every day.”

CALNET is focused on providing services that meet the state’s complex and critical telecommunications and network business requirements. It also has many benefits for state and local agencies including service level agreements, competitive rates, and end-to-end solutions.

With AT&T and CALNET, California public entities will have access to advanced technology solutions that will help them stay connected, serve their constituents, enhance operations and productivity, and more. New solutions under these contracts include fiber and wireless high-speed broadband data services and cloud-based voice and collaboration solutions, including contact center essentials.

Additionally, first responder and public safety agencies like law enforcement, emergency medical, and public works have access to FirstNet® Built by AT&T – the only nationwide, high-speed broadband communications platform dedicated to and purpose-built for America’s first responders and the extended public safety community.

FirstNet is designed to improve communications across public safety entities nationwide, allowing first responders and the extended public safety community to communicate easily and quickly with one another during everyday situations, big events, or emergencies.

U.S. Bank, Enterprise Community Partners Announce Innovative Racial Equity Bond

By
Press Release
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MINNEAPOLIS (Business Wire) — U.S. Bank and Enterprise Community Partners (Enterprise) today announced the issuance of an innovative bond designed for targeted and measurable racial equity results. Issued by Enterprise Community Loan Fund, Enterprise’s Community Development Financial Institution (CDFI), the $30 million bond will help provide loans to Black, Indigenous and people of color housing developers under Enterprise’s Equitable Path Forward initiative.

This is the first CDFI-issued racial equity bond. The designation of this social bond as a racial equity bond provides for targeted investments in underserved communities of color. CDFIs have rigorous standards about eligibility and reporting when it comes to how funds are used, and this bond will require additional project-level vendor requirements and thorough impact reporting data for investors. The introduction of this new social bond framework into the capital markets for mission-driven institutions like CDFIs offers companies the opportunity to directly invest in projects that support racial equity in underinvested communities of color.

“It is time to take decisive action to ensure the businesses that create affordable homes are more representative of the people who live in them,” said Lori Chatman, president of Enterprise Community Loan Fund. “Through Equitable Path Forward, our partnership with U.S. Bank will enable Enterprise to support talented developers across the country who have the skills and experience to create positive change in their communities.”

To achieve its impact goals, Enterprise will use the bond proceeds to finance loan capital to people of color-led community-based nonprofit organizations and mission-aligned for-profit developers. These loans are primarily for multi-family housing and community facilities. The loans themselves will vary in both type and stage of project development, including acquisition, construction, mini-perm, permanent and predevelopment.

U.S. Bank served as structuring agent, advisor and sustainability coordinator on the design of this unique framework. The company, which announced its long-term U.S. Bank Access Commitment earlier this year, is purchasing the initial $10 million of this $30 million bond. This structure provides more flexibility for Enterprise’s strategy to match its future Equitable Path Forward funding needs.

“We see tremendous opportunity for positive social impact with racial equity bonds, especially with this type of innovative framework. This structure allows an investor to see, down to project-level details, how their investment is advancing racial equity,” said Marcus Martin, managing director and head of ESG, Fixed Income and Capital Markets at U.S. Bank. “We expect this transaction will inspire other organizations – including corporations, municipalities, not-for-profits and more CDFIs – to issue similar bonds that address critical social challenges and deliver the most robust results for all stakeholders involved.”

“U.S. Bank is a strong supporter of CDFIs, which play an incredibly important role in financing entrepreneurs and small businesses that traditionally have been left out or underserved because of systemic inequities,” said Zack Boyers, president and CEO of U.S. Bancorp Community Development Corporation, the tax credit and community development subsidiary of U.S. Bank. “We’ve helped ensure more than $450 million in capital was available to CDFIs and their customers – the majority of that just in the last four years – and we look forward to continued collaboration to help build thriving communities.”

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